The Federal Reserve issues a rare yen intervention signal, a weakening dollar may boost Bitcoin

2026-01-26 03:06:38

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Breaking news from Mars Finance: the Japanese yen has experienced its largest gain in six months, sparking speculation about possible coordinated intervention between Japan and the Federal Reserve. After Japanese Prime Minister Fumio Kishida warned of abnormal yen fluctuations, the USD/JPY exchange rate dropped from near 160 to 155.6, marking the strongest single-day increase for the yen since 2026. The New York Federal Reserve has reportedly contacted major banks regarding the yen issue, which is often a precursor to coordinated currency intervention. Analysts suggest that such intervention could produce effects similar to those of 2008, injecting significant liquidity into global markets. CFA Michael Gayed stated that joint action by the US and Japan could prevent the Bank of Japan from being forced to sell US Treasuries, while deliberately devaluing the dollar to support the yen. A weaker dollar could boost global asset prices, including stocks, commodities, and cryptocurrencies. Bitcoin shows a strong positive correlation with the yen and a negative correlation with the dollar. Previously, in August 2024, a slight rate hike by the Bank of Japan triggered a $15 billion cryptocurrency sell-off, with Bitcoin falling from $64,000 to $49,000.

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